'Achieving the goals set by world leaders in the United Nations Millennium Declaration will be difficult without a significant improvement in the lives of slum dwellers, and the lives of slum dwellers cannot be improved without the sound and sustainable economic development that is conducive to the establishment of a strong shelter sector. As Financing Urban Shelter: Global Report on Human Settlements 2005 emphasizes, one of the key challenges in meeting the Millennium Declaration Goal on slums is mobilization of the financial resources necessary for both slum upgrading and slum prevention by supplying new housing affordable to lower income groups on a large scale. . . . It is my hope that, by highlighting the impacts of current shelter financing systems on low-income households and by identifying the types of financing mechanisms that appear to have worked for them, this report will contribute to the efforts of the wide range of actors involved in improving the lives of slum dwellers, including governments at the central and local levels, as well as non-governmental and international organizations.' From the Foreword by KOFI ANNAN, Secretary-General, United Nations Financing Urban Shelter presents the first global assessment of housing finance systems, placing shelter and urban development challenges within the overall context of macroeconomic policies. The report describes and analyses housing finance conditions and trends in all regions of the world, including formal housing finance mechanisms, microfinance and community funding, highlighting their relevance to the upgrading of slums. Recent shelter finance policy development is discussed at the international and national levels, and the directions that could be taken to strengthen shelter finance systems are examined. The Global Report on Human Settlements is the most authoritative and up-to-date assessment of conditions and trends in the world's cities. It is an essential tool and reference for researchers, academics, public authorities and civil society organizations around the world. The preceding issues of the Global Report on Human Settlements have addressed such topics as An Urbanizing World, Cities in a Globalizing World and The Challenge of Slums. Published with UN-HABITAT
Table of Contents
PART I: ECONOMIC AND URBAN DEVELOPMENT CONTEXT * Challenges of Sustainable Shelter Development in Macroeconomic Context * Understanding Urban Shelter Development Challenges * The Macroeconomic Context of Urban Shelter Development * Shelter Policy and Finance: Retrospective Overview * Context to International Thoughts on Financing for Urban Development * Trends in Shelter and Municipal Finance Development: 1972 2004 * Globalization of Finance * The New Millennium: Policies and Organizations in Shelter and Urban Development * Financing Urban Development * Municipal Finance and Urban Development: The Main Issues * National Municipal Finance Systems * Sources of Municipal Finance * Municipal Spending Patterns * Privatization of Municipal Services * Summing Up: Assessing the Effectiveness and Impacts of Municipal Finance Systems * PART II: SHELTER FINANCE, ASSESSMENT OF TRENDS * Mortgage Finance: Institutions and Mechanisms * Highlights * Recent Trends * Regional Analysis * Terms and Conditions * Housing Finance, Affordability and Lower Income Households * Financing for Social and Rental Housing * Conditions and Trends * Challenges * Small Loans: Shelter Microfinance * The Growth of Microfinance for Shelter * Other Providers and Sources of * Community Funds * What Are Community Funds? * PART III: TOWARDS SUSTAINABLE SHELTER FINANCE SYSTEMS * Assessing Shelter Finance Systems * Affordability and the Difficulties of Reaching the Poor * The Role of Mortgage Finance: Access to Capital and the Lack of Loan Finance * The Bigger Picture and What the Market Cannot Manage * Connections and Diversity within Globalization * Policy Directions Towards Sustainable Urban Shelter Finance Systems * Towards Inclusive Urban Infrastructure and Services * Strengthening the Sustainability and Performance of Shelter Finance Systems * Epilogue: Towards Sustainable Urban Shelter * First Element: Abating Housing Costs * Second Element: Increasing Purchasing Power * Synergizing the Two: Lower Housing Prices and Higher Incomes * Formulating and Implementing Urban Shelter Policies: Sheltering the Poor from 'Market Poaching' * PART IV: STATISTICAL ANNEX *
The United Nations Human Settlements Programme, UN-HABITAT, is the United Nations agency for human settlements. It promotes socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all.